Updated 17/10/2024
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Article 11 - Determination of relationship between parties, arm’s-length and connected clients

Article 11

Determination of relationship between parties, arm’s-length and connected clients

For the purposes of Article 9(1), points(b)(i) and (b)(ii), Article 9(2), point (d), and Article 10, point (a), institutions calculating KIRB shall, as applicable, assess the relationship between parties, the arm’s-length requirement, or the connectedness of clients, as referred to in those points, to the best of their knowledge, on the basis of either of the following types of information:

(a)

information on the debtors, obtained at the time of the origination of the exposures from the originator, the seller or the original lender;

(b)

information obtained from the servicer in the course of its servicing the exposures or in the course of its risk-management procedure.